Correlation Between First Trust and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both First Trust and Kelly Strategic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining First Trust and Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Nasdaq and Kelly Strategic Management, you can compare the effects of market volatilities on First Trust and Kelly Strategic and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in First Trust with a short position of Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Kelly Strategic.
Diversification Opportunities for First Trust and Kelly Strategic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Kelly is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Nasdaq and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana and First Trust is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on First Trust Nasdaq are associated (or correlated) with Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of First Trust i.e., First Trust and Kelly Strategic go up and down completely randomly.
Pair Corralation between First Trust and Kelly Strategic
If you would invest 1,536 in First Trust Nasdaq on September 12, 2024 and sell it today you would earn a total of 275.00 from holding First Trust Nasdaq or generate 17.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
First Trust Nasdaq vs. Kelly Strategic Management
Performance |
| Timeline |
| First Trust Nasdaq |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Trust and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Kelly Strategic
The main advantage of trading using opposite First Trust and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Kelly Strategic can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.| First Trust vs. First Trust Nasdaq | First Trust vs. Global X Aging | First Trust vs. Invesco Nasdaq Biotechnology | First Trust vs. First Trust Indxx |
| Kelly Strategic vs. First Trust Nasdaq | Kelly Strategic vs. Invesco Nasdaq Biotechnology | Kelly Strategic vs. Global X Genomics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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